Business & City Summary

Government looks at big fraud cases

The Government has announced a review of how big fraud cases are handled. Sir Nicholas Lyell, Attorney General, said in a Commons written reply that he was reviewing the distribution of casework between the Serious Fraud Office and the fraud divisions of the Crown Prosecution Service.

The overhaul, in line with a recommendation by the Royal Commission on Criminal Justice, follows a series of failed high-profile fraud prosecutions, and criticism of the authorities' conduct. Sir Nicholas said the review would examine relative workloads and criteria for allocating cases between the two departments; organisation and management of investigation and prosecution work, bearing in mind the need to secure timely and cost-effective prosecutions; and the effect of extended powers available to the SFO.

BT videos not blocked

BT is not blocked by law from offering video on demand down its telephone wires, although the service was not envisaged when laws were drawn up in 1991, Patrick McLoughlin, an undersecretary of state for trade and technology, told a cable television conference. 'It is clear that the notion of video on demand over copper wires is a new one, not envisaged as a commercial proposition when the 1991 telecoms white paper was written.'

Share deal reform

The Department of Trade and Industry proposes to adopt a simply-worded European directive as the basis of a reform of the law that prohibits companies from financing the purchase of their own shares. The DTI has suggested moving to a two-tier system, revising sections 151-154 of the Companies Act to cover private companies and other financial assistance not covered by the European directive. The Government hopes reform will ease uncertainties over low-cost share- dealing schemes and certain venture capital investments.

UB board shake-up

Malcolm Little will become managing director of McVitie's UK, part of the United Biscuits food group. He trades places with John Gilliatt, who will be managing director of the Ross Young subsidiary. Terry Stannard replaces David Garman as managing director of KP in Britain. Mr Garman is joining Associated British Foods to head Allied Bakeries.

Taking Bull by horns

France will plough almost pounds 1bn into Cie des Machines Bull by next year in a last recapitalisation before privatisation. Jean-Marie Descarpentries, former chairman of CarnaudMetalbox, will replace Bernard Pache as chairman.

Pearson sets date

Pearson, the media conglomerate, expects the demerger of its Royal Doulton fine china unit to come into effect on 2 December.

World Markets

New York: Despite a sell-off in banks and financials the Dow Jones average was holding on to a 12.58-point gain at 3,642.31 by the close.

Tokyo: Dragged down by profit- taking after an earlier rally, the Nikkei average closed 102.21 points weaker at 20,072.21.

Hong Kong: Still powering into uncharted territory, the Hang Seng index broke 9,000 for the first time to end 267.15 points (3.05 per cent) higher at 9,031.13.

Sydney: Prices recovered in late trade from an afternoon bout of selling. The All Ordinaries index was 11.4 points better at 2,085.5.

Johannesburg: Gold price lethargy contributed to an uncertain start to the week. The overall index eased 14 points to 3,901.

Frankfurt: Hopes that the Bundesbank will cut interest rates on Thursday helped the DAX index to 2,033.32, a gain of 18.29 points and a record closing high.

Paris: The CAC-40 index was 5.73 points firmer at 2,144.99.

Amsterdam: The market was another establishing an all-time high as the EOE index reached 370.68, up 3.5, with dealers forecasting more gains this week.

London: Report, page 30.